Principal of the Bapak Legacy Fund

The original contribution value of a gift to the Bapak Legacy Fund’s principal shall be held in perpetuity and shall remain inviolate. The principal, including the original contribution value from each donor and the growth attributable to appreciation of the principal as well as the accumulated income that becomes principal, as outlined below, shall not be invaded or distributed in any manner whatsoever.

Gift Value as Principal

The original gift value of all gifts, bequests, or donations to the Bapak Legacy Fund, no matter when made, of property, money, or assets of any type will be held as principal in this endowment Bapak Legacy Fund in perpetuity and will remain inviolate.

Certain Appreciation as Principal

Any appreciation or increase in value of the Bapak Legacy Fund’s principal from the date of the Resolution creating the Bapak Legacy Fund forward until our Founder’s Birthday (June 22nd) in the year 2010 shall be transformed into principal and held in perpetuity and shall remain inviolate.

Certain Accumulated Income as Principal

All income earned by the Bapak Legacy Fund from the date of the Resolution creating the Bapak Legacy Fund forward until the date of the Bapak Legacy Fund’s first distribution, our Founder’s Birthday (June 22nd) in the year 2005, shall be added to the Bapak Legacy Fund’s principal to be held in perpetuity and shall remain inviolate, subject to the necessity of expenses as provided below.

Distribution of Income

Distribution of income from the Bapak Legacy Fund shall commence five years from the date of the Resolution creating the Bapak Legacy Fund on our Founder’s Birthday (June 22, 2005) or upon The Bapak Legacy Fund’s principal attaining a sum of one million dollars (U.S. $1,000,00000), whichever is sooner.

Distribution of income from the Bapak Legacy Fund shall be made by the Muhammad Subuh Foundation in accordance with the principles enunciated in these guidelines:

(a) No more than fifty percent (50%) of income earned from the Bapak Legacy Fund may be distributed during the period commencing on the date of the Bapak Legacy Fund’s first distribution, and ending ten years from the date of the Resolution creating the Bapak Legacy Fund on our Founder’s Birthday, (June 22, 2010).

(b) The remaining fifty percent (50%) of income earned from the Bapak Legacy Fund during the same period shall be accumulated and transformed into principal and be held in perpetuity and shall remain inviolate.

(c) After ten years (June 22, 2010) or upon the attainment of $10,000,000, which ever is sooner, 100% of the income earned from the Bapak Legacy Fund may be distributed by the Muhammad Subuh Foundation.

Expenditure of Appreciation

During a World Subud Congress commencing on or near the year 2011, and during each succeeding World Subud Congress, the World Subud Association will determine whether the annual appreciation or annual increase in principal during the Bapak Legacy Fund’s next four years, or until its next World Congress, shall be treated as income or as principal. If the decision is that the appreciation is to be transformed into principal, then the appreciation shall be held in perpetuity and be inviolate. However, if the decision is to treat the appreciation as income, then MSF shall distribute the appreciation in accordance with the principles and guidelines set forth here.

Investment Management

Muhammad Subuh Foundation will invest the Bapak Legacy Fund’s principal, or engage investment managers to do so. The Foundation will have the authority to invest in the following kinds of property and in none other: bank deposits; U.S. Government bonds; common or preferred stock or bonds listed on any national securities exchange; or any mutual funds listed on any national securities exchange. The Foundation shall also have the power to retain any contributed property if it determines that to be best for the Bapak Legacy Fund.

Expenses of Management

Investment management, accounting, legal and other fees that are necessary to run the Bapak Legacy Fund will be charged to the Fund. For this reason, the Foundation has been authorized to use up to two percent (2%) of the Bapak Legacy Fund’s asset value, charged against distributable income (during the first five years, against accumulating income, during the second five years, 50% against distributable income and 50% against accumulating income) to defray expenses incurred in the management of the Bapak Legacy Fund, so long as those expenses are in line with the best practices of fund management and are approved by the World Subud Council or its designee at its annual meeting.

Donor Agreement

Each donor to the Bapak Legacy Fund will sign a Donor Agreement. This form is provided here. It is simple and states, as required by the laws of the State of Virginia, that the donor knows he or she is making a gift to an endowment fund, and that the gift will be subject to the terms stated in these guidelines.

Contract of Agreement with MSF | How you can participate | Forms